The meeting was called to order by Mike Deck at 4:06 PM. Those in attendance were the board members (Mike Deck, Bob Ristinen, Bob Farmer and Bob Champ), Dick Lyons (Legal Counsel), Terry Kenyon (Engineering) and Mary Wagner (Bookkeeper and Budget Officer). Five members of the Public were present. Bill Barclay (board member) was absent (excused).

Public Comments:

R. VanWinkle noted that he was seeing pressure surges on the low pressure Lafayette water main. Terry Kenyon noted that it could be problems with the Lafayette line or problems with the setting of the needle valve in the pumpstation. A new needle valve is to be installed which would alleviate the problem, if the valve causes it. Rip will be informed when the new valve is installed and he will tell us how it affects this problem.

Frank Hauke noted that there is a small leak in Benchmark. He has called for locates but has not as yet had a response. Frank also expressed concern that we should perhaps reconsider replacing the mains in Benchmark. At this time, we do not know the cause of the leak. Mike suggested that we consider this topic as a budget line item. The cost of the repairs in Benchmark were more than originally thought and this will be important in our budget decision. Mike also noted that in future meetings we will have an agenda item for operations and Frank or Dick could answer questions and note problems and concerns.

Jerry Bearman noted that he was concerned with the magnitude of the "stand-by" fee of $20/mo. Mike noted that we would be addressing the fee structure during our discussion of the 2002 budget. Mike also related that those residences not hooked into the system are getting advantages from the system. Jerry was particularly concerned about this fee on a vacant lot. Dick related that legally this is not a stand-by fee but a minimum fee. A stand-by fee is assessed where no tap has been purchased. Again, we delayed discussion until later in the meeting when we discuss the fee structure with regard to the budget. Dick specified the categories associated with lots in the district. A stand-by fee can only be assessed where a lot is in the district but does not have a tap. A monthly minimum has a tap that is not activated. A third category has an active tap but no water use. This category has a minimum service charge. Mike noted that some of the monthly fee will be going toward capital improvements and some will go toward day to day operations.

Secretary’s Report:

The minutes of the 17 September 2001 meeting were discussed. Mike noted that under the Engineering Report we did not assess liquidated damages against CPL because of extenuating circumstances. It was thought that we should amend the minutes to include these circumstances in the minutes. These circumstances were Boulder County Interventions, utility locates, main extensions and pumpstation improvements. A motion was made by Bob Ristinen that we approve the minutes of the meeting, as amended. The motion was seconded by Bob Farmer and approved unanimously.

Discussion ensued on utility locates and how difficult it is to obtain them in a timely manner. Mike will call the pertinent parties to see if there is a way to expedite this process and note that we had poor experiences with locates on this job. Frank will develop a list of people who do pipe repairs besides CPL.

The minutes of the 3 October 2001 Special Meeting were discussed. A motion was made by Bob Farmer that we approve the minutes of the meeting. Bob Ristinen seconded the motion, which was unanimously approved.

Finance Report:

Mary Wagner handed out the balance sheet, profit and loss YTD comparison, P&L budget vs. actual and the Profit and Loss by Fund. Further discussion on finances was delayed until our budget discussion later in this meeting.

Engineering Report:

CPL Punch list:

Mike handed out a copy of the punch list. This was an incorporation of the engineering punchlist and our punchlist. Mike related how he arrived at the current punch list. Terry noted that we could request a formal statement from Boulder County saying that we are done with the project or noting where we are not done. Mike will call Bill Eliason to find out about this matter.

The punchlist was reviewed and certain items were discussed in detail. Issues at 7444 and 7456 were discussed with respect to responsibility for correcting. Homeowners will be notified by Mike Deck and Bob Farmer that the responsibility for repair lies with them.

Other items were noted as done or we have no responsibility for correcting. The tracer wire was discussed and it was thought that it would be prudent to test the continuity of the system.

7222 Spring has fence posts on the ground and mike will check the video to assess responsibility for repairing.

Other items for resolution were also discussed.

CPL Landscape Resolution:

Mike read the contract with the description of the task and noted that CPL had been given a copy of this part of the contract. Discussion ensued on whether CPL had performed the task as per the contract. It was decided that we feel that this was not done. Terry also agreed that this was very poor performance. The cost of having a Landscape Firm do this task would be about $35K. Terry noted that we have enough money retained to cover the cost of doing this job.

CPL Payment Schedule:

It was decided that we should retain funds for landscaping and punch list items. We have retained money from the total project at 5% or about $48K. We have also retained money at 15% of the Pipeline costs. Total retainage is about $150K. No sub contractors came forward from our publication of the final settlement. A motion was made by Bob Farmer authorizing Mike Deck and Dick Lyons to draft a letter to CPL giving them 7 days notice to cure the landscaping and punch list items or the district will retain monies to accomplish these tasks independently. Bob Ristinen seconded the motion. A friendly amendment was made by Mike Deck that we retain 10% of Item IA as the monies necessary to rectify the above items. Bob Farmer seconded the friendly amendment. The motion passed unanimously.

Pumpstation Items:

Frank Hauke and Dick Winters submitted a list of improvements that could be made to the pumpstation.

Chlorine levels from the Lafayette system was discussed. We again will contact Lafayette to see what the problem is if they are not delivering water with .2 PPM chlorine. Lafayette has said that they will look into the matter if this level of chlorine is not in the delivered water.

It was decided to shelve these items until the system has been turned over to EBCWD from Aquasource and then Frank and Dick could incorporate those inexpensive but important items, such as the thermo cutout sensors at the pressure pumps.

Dick noted that the procedures to implement the senior citizens tax credit are still unknown but the State will make up any difference noted. This only applies to the general operating taxes and not the bond indebtedness. Dick also noted that we must plan fin the budget for an election in the spring of next year.

Unfinished Business:

Meter Reading:

We have obtained a quote from Aquasource of $175.25 per meter read. Bob Farmer, et al, generated a map showing the location of meter pits in the district. Other possible contractors for this job were discussed but it was thought that Aquasource was the best overall to perform this task. Bob Farmer made a motion that we give Aquasource the job of meter reading for the district. Bob Ristinen seconded the motion, which passed unanimously.

Mike will send the agreement of services to Aquasource.

Haddock, Sawyer and Moeller Actuals:

Terry submitted a memo to EBCWD specifying the costs associated with the above water line extensions. Mike will compare these to the original quote so that we can incorporate the appropriate numbers in the budget.

Benchmark Status:

The current leak in the system at this location will be fixed and the topic will be again addressed in future meetings.

New Business:

2002 Budget First Reading:

Mary Wagner (Budget Officer) submitted a four-page handout of the 2002 Budget. The first page noted the debt service fund, the second page the Enterprise Fund budget to be supplied to the government, the third page the Enterprise Fund budget with the 2001 budget for comparison and the final page gave the notes explaining the line items.

Mary discussed the handout line item by line item.

The cost of a tap was discussed. Lafayette price is $21,995 and our uplift will bring this cost to $27,495.

Several of the line items were discussed and adjusted. Dick noted that we do not need a line item for Tabor Reserve, as we are an Enterprise Fund. Several compromises were discussed so that the budget could be balanced. The draft of the budget will be e-mailed to the board and we should have input to Bob Farmer by the 22^nd of October so that the final budget can be prepared.

The notice of the budget hearing during the next month’s regular meeting must be published prior to the meeting.

Directors Comments:

Bill noted that it would have been nice to have access to the e-mail list so that he could have notified those people of the problems incurred in starting up the system.

There was some discussion on how we hook up residences to the system.

A motion was made to adjourn by Bob Ristinen, seconded by Bob Champ and unanimously approved. The meeting was adjourned at 7:34 PM.

The above is respectfully submitted by the secretary…Bob Champ, October 17, 2001